KC among Top 10 where buyers can afford the most home

For many homeowners, being able to afford more home becomes a challenge when also battling debt.

Across the U.S., the fight for more space and how affordable it comes varies depending on where you live.

Data compiled in June 2020 showed that a whopping 67 percent of U.S. adults carry at least one type of non-mortgage debt, this according to a study by SmartAsset.

In the same study, SmartAsset ranked the Top 10 cities where residents can afford the most home. Among the 50 largest U.S. cities, Kansas City landed at number five.

Ranking was determined by calculating data on the median household income in each city and average non-mortgage debt to reach an estimate how much home the average household could afford.

An average household in Kansas City, Mo. brings in $55,259 of income, according to SmartAsset findings.

Based on the average income, the study then applied a 10 percent down payment based on income saved over five years, arriving at $27,630. Using a state-wide average monthly debt payment of $272, SmartAsset calculated that a typical Kansas City household would be able to afford a home that is almost 41% more than the median home value in the city, or $168,400.

In nearly half of the 50 cities looked at, the study determined that in 22 of the largest U.S. cities, households cannot afford the city’s median-valued home while paying off the average non-mortgage debt.

The full study by SmartAsset can be found here.